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Tiger Brands invests R300m in peanut butter manufacturing plant

12 Apr 2024

Black Cat, South Africa’s most loved peanut butter brand, has a new home following a R300m capital investment by Tiger Brands. The new peanut butter manufacturing facility is in Chamdor, Krugersdorp, on Johannesburg’s West Rand.

Tjaart Kruger, Tiger Brands CEO; Nomalungelo Gina Deputy Minister in the Department of Trade, Industry and Competition (DTIC): Economic Development and Dumo Mfini, managing director: Culinary, Tiger Brands. Image supplied

The plant was officially opened during a celebratory event attended by Tiger Brands CEO, Tjaart Kruger, and Deputy Minister in the Department of Trade, Industry and Competition (DTIC): Economic Development, Nomalungelo Gina, on Friday, 13 April 2024.

This is one of the largest investments of capital that the company has made in a single project, signalling the opportunity the peanut butter category presents for sustainable returns.

“Consumers are looking for affordable and healthier food options. Peanut butter is an important staple in the South African diet, and we expect strong growth in this category.

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“This new facility will introduce flexibility, improved efficiencies and reduce our cost profile, allowing us to retain our prominent position in the market and respond to consumer needs,” says Kruger.

The South African Peanut Butter category accounts for 50% or R1.7bn of the total South African spreads market (excluding margarine), which is worth R3.4bn.

Black Cat Peanut Butter is one of the biggest in the market, with 5 million kgs of Black Cat sold per annum in formal retail stores.

Investments in equipment at the manufacturing site will improve reliability and efficiencies. Packaging line upgrades introduce greater in-house flexibility for quicker innovations and new product offerings in line with consumer demands for value and affordability.

Black Cat is South Africa’s most loved and trusted peanut butter brand recognised by consumers as having the highest quality credentials. Consumer research shows that the nearly 100-year-old brand is found in 7 out of 10 South African households or in 10 million out of the 15 million households that purchase peanut butter.

“This is a significant investment by Tiger Brands which will further strengthen and grow a proudly homegrown brand. As consumers seek value for money, we are well positioned as one of the top players in the market to meet their needs of affordability and nutritional value with the added benefit of superior quality, attributes that Black Cat is known for” says Dumo Mfini, managing director: Culinary, Tiger Brands.

In 2023, Black Cat was voted Coolest Peanut Butter Brand by South Africa’s youth in the Sunday Times GenNext Awards. It was awarded Iconic Brand status and Overall Category Winner in a 2023/2024 AskAfrika survey.